My estranged wife and I have a signed separation agreement stating that she is to pay me $256 per month to cover the loan payment for the car that she received in the equitable distribution. The loan for the car is in my name. She was unable to refi the loan due to poor credit and low income. She has failed to pay on time and is currently past due. I pay the payments on time to the bank and so now she is in the hole to me. Can I have this matter settled in small claims court since we have the separation agreement/contract? It is a cut and dry case…she agreed to pay and I have proof that she has not paid. The loan has about $5,500 remaining balance and she is behind 2 months of payments.
The proper course of action is to file a breach of contract case in civil district court.